18 Answers

Most lending institutions require some form of credit history in order to base their loan decision. you may be debt-free, but this is not what the lenders are looking for. and, not having a job is not going to help you with a loan.

If you don’t have a job, we’re trying to assume you have other sources or regular income, like payments, dividends of some sort, from investments. If you don’t have a regular source of income, you won’t get a loan.

For people who’s income doesn’t come from a paycheck or they don’t want to reveal all to some lender, a home loan is still available but will cost more.

Most homebuyers work for a steady paycheck and are willing to divulge details of their finances in exchange for the best available mortgage loan.

But a lot of buyers don’t draw a steady paycheck from ane employer. They own businesses, make commissions, live off investments, get their income in cash or live a life of crime. Others don’t want to give up their financial privacy and the product that they seek are called “low-doc” and “no-doc” mortgages.

Borrowers pay for the flexibility and privacy of these types of mortgages. They carry higher interest rates than conventional mortgages. Lenders want these borrowers to make substantial down payments and to have excellent credit.

There are three main types of low-doc/no-doc mortgages.

Stated-income mortgages tend to be for people who work but don’t draw regular wages or salary from an employer. That includes self-employed people or those who make a living off commissions or tips.

No-ratio loans are often the right call for wealthy people with complex financial lives, retirees who live off investments and people whose lives are in flux because of divorce, recent death of a spouse, or career change.

No-doc or NINA (no income/no asset verification) mortgages are for creditworthy people who want maximum privacy and can afford to pay for it.